A scathing new report accuses Washington of bankrolling a homelessness industrial complex that prioritizes services over solutions, as federal spending balloons while street counts keep rising.
The Cicero Institute analysis of IRS filings from 1,458 nonprofits receiving Housing and Urban Development (HUD) funds shows provider revenues jumped 124% between 2013-2024 β nearly quadruple the inflation rate β while homelessness climbed 31% nationally. HUD’s Continuum of Care grants alone grew 67% from 2018-2024.
The ‘Fee-For-Service’ Failure
Current funding largely rewards maintaining beds and delivering services rather than moving people into stable housing, the report argues. ‘It’s like paying mechanics for oil changes instead of fixing cars,’ said one policy analyst familiar with the findings. Renewal decisions hinge on compliance checks, not whether programs actually reduce homelessness.
HUD’s High-Stakes Pivot
HUD’s 2026 overhaul makes 40% of renewal funds competitive, prioritizing metrics like unsheltered count reductions and job placements. But the changes face legal challenges after a district court vacated the new rules, now under appeal. Advocates demand transparency as the agency implements what could become a national model β or cautionary tale.
The Growth Imperative
Commissioner James Carter, who authored the report’s foreword, argues economic expansion remains the unsung solution: ‘Prosperity builds the tax base to fund effective programs while creating jobs that prevent homelessness.’ The report lands as Congress weighs $9.6 billion in new spending, including $4.8 billion for service-provider raises.
With encampments spreading and public patience waning, the analysis fuels bipartisan frustration over a crisis where good intentions keep outpacing good outcomes.
Source: www.dailywire.com β https://www.dailywire.com/news/why-washington-is-paying-to-keep-people-on-the-streets